Daydream Dragons are the hosts of daydreams and fantasies. They spend the majority of their time sitting on clouds, dropping daydreams down into the minds of people passing by. Humans who live near Daydream Dragons must be especially careful not to let their thoughts wander, or they could end up spending hours or even days in a trance-like waking dream state.

Dragons are highly-intelligent reptilian creatures that—from a human perspective, at least—appear to live forever. Many different varieties of dragon exist, each with their own unique qualities, habitats, and behavior. Adolescence in dragons is usually marked by the growth of a hatchling’s wings, although not all breeds of dragons grow wings and some breeds have other traits that indicate the beginning of maturation. In Galsreim, dragons and humans coexist peacefully.

This dragon is always asleep, but he can transfer dreams about the future to other dargons. While he's asleep, "Morp" dreams about his clan, and sees all who live in the clan. After seeing them, he sends them dreams that contain glimpses of the future. For example, when he "saw" Carmine Petunias, he realized that she was destined to be his mate. So he sent her a dream that led to meeting him, and when she's around, Morp awakes. He no longer has his powers while awake, but he can live the world for real. This is how his children come to be.